Even though the attention is firmly directed at Bitcoin, but there are a lot of other cryptocurrencies that have seen their fair share of gains since the start of this year leaving a lot of analysts claiming that we are currently in ‘altseason’. This seems to be the case with Binance Coin surpassing its all-time high, in a brutal bear market no less, as Litecoin has rallied by more than 200 percent since December’s low. Ethereum, Tezos, Cardano and Basic Attention Token are just some of the other prominent cryptocurrencies that have also seen some jaw-dropping gains over the past two months.
And as Fundstrat’s Tom Lee explains, one of the pre-conditions for historical altcoin rallies has recently come back to life in the current cycle. The condition is a drop in the correlation between the crypto asset class at large and Bitcoin itself.
1/ Since 2015, one of the “pre-conditions” for the start of alt-season is a drop in the correlation between Alts and $BTC
This drop in correlation has started recently (lower part of chart and scale is inverted)
This is a data point to suggest alt-season could be underway.
— Thomas Lee @fundstrat April 20, 2019
As it turns out though, the pre-altseason, so to speak, could be over already! The dominance of Bitcoin hit just over 54 percent earlier this week which is the highest figure since mid-December when BTC was in the midst of the capitulation to the low $3,000 mark. This resurgence in Bitcoin’s market share came as a result of BTC’s ability to outperform some of the smaller digital assets over the last week.
A popular crypto commentator and trader, Immortal Technique recently suggested that Bitcoin’s market dominance has broken past a declining trendline, all while altcoin’s market dominance has remained trap under a key resistance. Essentially, this suggests that Bitcoin currently has the upper hand.
$ALT Marketcap & $BTC Dominance pic.twitter.com/OPWE4cuwYZ
— Inmortal technique @inmortalcrypto April 24, 2019
Mati Greenspan, from eToro, has indicated that Bitcoin could still outperform saying:
“If you look back to early April, when BTC rose 25% in a day, every other digital asset rose as well. But, since that day, BTC has remained well bid while every other asset has slowly begun to decline due to a rotation out of ‘altcoins’ and into BTC.
